Strengthening tenant demand for industrial property in Melbourne’s west has sparked more than 100,000sqm of leasing activity in a 30-day period.
CBRE’s Todd Grima, Tom Hayes and Harry Kalaitzis have leased 105,034sqm across seven transactions in Melbourne’s western industrial precincts of Truganina, Laverton North and Sunshine
Mr Grima commented on the upturn in leasing activity: “The recent spate of transactions has been driven by several factors; including rapid growth in the ecommerce sector; occupiers being pushed out of the fringe by redevelopment and increased rents and population growth driving increased demand for goods.
“Industrial vacancy in the west is now the lowest it’s ever been, with current vacancy levels hovering at 1.7% - reflecting just 232,000sqm of stock in the market.”
Among the recent transactions, Hitachi has inked a long-term lease on an 11,790sqm distribution centre at 34-36 Banfield Court, Truganina. The property, which provides excellent access to Princess Freeway, features modern office amenities and high clearance warehouse. It was leased for $80 per square metre (net).
In a second transaction, HB Commerce has leased a 30,885sqm office/warehouse facility at Maker Place in Truganina from lessor, Frasers Property, for three years. Similar rentals in the area range from between $75-$80/sqm (net).
In Laverton North, Austpac Transport & Logistics has signed a lease on a 24,662sqm property at 32-58 William Angliss Drive. The property, owned by Charter Hall, will accommodate Austpac Transport & logistics relocation from Port Melbourne. Rentals in the area range from between $75 - $80 per square metre (net).
CBRE’s Tom Hayes said the uptick in tenant demand was placing upward pressure on industrial rents in the area.
“Industrial rents have increased by between $3 - $5 per square metre over the past 18 months – further amplifying competition for the limited stock available,” Mr Hayes explained.
“This pressure is sparking development activity, with institutions and large privates continuing to speculatively develop, with 212,633sqm due for completion in the next six months. Of this, around 74,748sqm is already committed and an additional 54,870sqm is under heads of agreement.”
CBRE’s Todd Grima, Tom Hayes and Harry Kalaitzis have leased 105,034sqm across seven transactions in Melbourne’s western industrial precincts of Truganina, Laverton North and Sunshine
Mr Grima commented on the upturn in leasing activity: “The recent spate of transactions has been driven by several factors; including rapid growth in the ecommerce sector; occupiers being pushed out of the fringe by redevelopment and increased rents and population growth driving increased demand for goods.
“Industrial vacancy in the west is now the lowest it’s ever been, with current vacancy levels hovering at 1.7% - reflecting just 232,000sqm of stock in the market.”
Among the recent transactions, Hitachi has inked a long-term lease on an 11,790sqm distribution centre at 34-36 Banfield Court, Truganina. The property, which provides excellent access to Princess Freeway, features modern office amenities and high clearance warehouse. It was leased for $80 per square metre (net).
In a second transaction, HB Commerce has leased a 30,885sqm office/warehouse facility at Maker Place in Truganina from lessor, Frasers Property, for three years. Similar rentals in the area range from between $75-$80/sqm (net).
In Laverton North, Austpac Transport & Logistics has signed a lease on a 24,662sqm property at 32-58 William Angliss Drive. The property, owned by Charter Hall, will accommodate Austpac Transport & logistics relocation from Port Melbourne. Rentals in the area range from between $75 - $80 per square metre (net).
CBRE’s Tom Hayes said the uptick in tenant demand was placing upward pressure on industrial rents in the area.
“Industrial rents have increased by between $3 - $5 per square metre over the past 18 months – further amplifying competition for the limited stock available,” Mr Hayes explained.
“This pressure is sparking development activity, with institutions and large privates continuing to speculatively develop, with 212,633sqm due for completion in the next six months. Of this, around 74,748sqm is already committed and an additional 54,870sqm is under heads of agreement.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
